Compass Minerals Reports 36% Sales Growth to $494.6 Million, Net Loss Improves in Latest Quarter

Compass Minerals International, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company achieved total sales of $494.6 million, a 36% increase from $364.0 million in the same quarter of the previous year. This growth was driven by higher sales volumes in both the Salt and Plant Nutrition segments, although it was partially offset by lower average sales prices. The company recorded a net loss of $32.0 million, an improvement from a loss of $38.9 million in the prior-year quarter, reflecting a reduction in impairment losses associated with its Fortress fire retardant business.

In terms of operational changes, Compass Minerals is in the process of exiting the Fortress fire retardant business, which has led to a $53.0 million impairment loss recognized in the current quarter. The company has also reduced its corporate workforce as part of a strategic refocus aimed at improving profitability in its core Salt and Plant Nutrition businesses. As of March 31, 2025, the company reported total assets of $1.53 billion, down from $1.64 billion as of September 30, 2024, primarily due to the impairment of intangible assets and a decrease in inventories.

The Salt segment saw a notable increase in sales, with total sales rising to $458.3 million, up from $336.0 million in the prior-year quarter. This was attributed to a 51% increase in highway deicing sales volumes, driven by more severe winter weather. However, average sales prices for highway deicing products decreased by 5%, impacting overall revenue. The Plant Nutrition segment also experienced a 16% increase in sales, reaching $36.3 million, primarily due to a 26% rise in sales volumes, although average prices fell by 8%.

Looking ahead, Compass Minerals anticipates continued growth in both segments. For the Salt segment, sales volumes are expected to range between 10.5 million to 10.9 million tons for fiscal year 2025, with adjusted EBITDA projected between $215 million and $230 million. The Plant Nutrition segment is expected to improve sales volumes to between 295,000 and 315,000 tons, although lower average selling prices are anticipated due to global market conditions. The company plans to invest between $75 million and $85 million in capital expenditures for the fiscal year.

Overall, Compass Minerals is navigating a challenging market environment while implementing strategic changes to enhance its operational efficiency and profitability. The company remains focused on optimizing its production and inventory levels in response to seasonal demand fluctuations and market conditions.